Volkswagen electric car sales fall: Why are Europeans turning to petrol?

In its latest financial update on April 10, the company reported that sales of all-electric vehicles fell 24% in Europe, while sales increased 91% in China, year-on-year.

However, overall, the company said it increased its vehicle shipments by 3% to 2.10 million vehicles, with the main drivers being China, Latin America and North America.

“Combustion engine vehicles increased by 4% to 1.97 million units, which helped offset the slight decrease of 136,400 electric vehicles (BEV). In this segment, the growth of power in China (+91%) has not been fully achieved. the decline of Europe (-24%).

“However, BEV orders in Western Europe improved significantly from January to March. Two more electric models were ordered compared to the same period last year (+154%), so that the BEV order bank currently stands at around 160,000 cars,” said the company’s press release.

Hildegard Wortmann, member of Volkswagen’s Extended Performance Committee for Sales, commented on the latest results.

“In a market environment that is still challenging, the Volkswagen Group achieved a good delivery performance in the first quarter of our hybrid products giving us flexibility to cover changes in demand in certain segments – as is the case at the moment. regarding all electric vehicles – to others.

“The increase in orders for all our electric models in Europe gives us confidence in the growth of this segment, both in our home region and worldwide throughout the year. More than 30 model launches of all engine types this year will increase in the coming months.” .”

Why are Europeans returning to gasoline?

In February, The European Parliament voted in favor of a new law banning the sale of petrol and diesel vehicles from 2035.

This new law, part of a wider effort to tackle climate change in the EU, will speed up the EU’s transition to electric vehicles.

Despite this, sales of electric vehicles decreased in Europe in the first quarter of 2024, as the sector still faces challenges, such as high costs and a lack of charging infrastructure, as also highlighted by the World Economic Forum in a recent report the other day.

“A recent report from Ernst & Young highlights the positive impact that regulation, subsidies and incentives have had on driving adoption…but even with subsidies, cost remains one of the biggest barriers to mass market adoption. On average, EVs cost more than a quarter of internal combustion engine models, However, over time, their ownership costs are low – something that car buyers can be very aware of, emphasizes EY”, shows the report of the World Economic Forum.

The World Economic Forum also noted that delays in setting up payment infrastructure continue to affect the market.

“Ernst & Young predicts that car adoption will falter in the absence of large public networks of fast chargers aimed at those who cannot charge at home or who need a top-up on long journeys will require the removal of bureaucracy, faster approvals from local authorities and grid connections available from public utility networks,” the report also states.